Your manager has asked you to construct an Excel spreadsheet that will allow you to compare the total federal income tax and payroll/self-employment tax liability due when operating a business as a sole proprietorship as opposed to an S corporation. Use this spreadsheet to calculate the tax consequences to Ms. Macchiato of incorporating No DozeCafas an S corporation, assuming the business alternatively earns an annual taxable income of $75,000, $150,000, or $225,000(before considering any salary payments to Ms. Macchiato and associated payroll tax expenses).

Importantly, your spreadsheet should produce the correct answer simply by entering a particular level of business income. That is, the formulas in your spreadsheet must be flexible enough to accommodate the different tax provisions that apply at varying income levels without editing any cells besides the income itself.

Use 2019 tax rates and taw law, including the Qualified Business Income deduction, in your analysis(you may assume that Ms. Macchiato qualifies for the full 20% QBI deduction on eligible income without limitation). Be sure that your analysis incorporates self-employment and payroll taxes, not just federal income taxes. You may ignore any state tax implications. Ms. Macchiato is married and files jointly with her spouse. Assume that the couple does not have enough itemized deductions to itemize and that they have other sources of income exactly equal to the standard deduction(so you may ignore other income and deductions). The couple does not have children or other dependents